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- Fannie Mae now sees mortgage rates dipping below 6% in 2024, anticipating a stronger housing market rebound.
- The 30-year fixed rate is expected to hit 5.8% by the fourth quarter, down from a previous estimate of 6.5%.
- "The outlook for both short term rates and mortgage rates is now decidedly lower than what we had previously forecast."
The housing market will thaw faster than expected with mortgages dipping below 6% later this year, according to Fannie Mae, which sharply revised its forecasts from just a month ago.
That's as the Federal Reserve has signaled a pivot away from tight monetary policy, sending bond yields lower, along with other borrowing costs.